PJC Business

PJC 101.50

C ONTRACTS

Commission of Texas v. Gulf Energy Exploration Corp. , 482 S.W.3d 559, 571 (Tex. 2016) (quoting Borneman v. Steak & Ale of Texas, Inc. , 22 S.W.3d 411, 413 (Tex. 2000). Source of question. The question is adapted from Tex. Prop. Code § 28.002. The definitions are derived from Tex. Prop. Code § 28.001. Broad-form submission. PJC 101.50 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in which it is capable of being accomplished). For further discussion, see PJC 116.2 regarding broad-form issues and the Casteel doctrine. Owner, contractor, and subcontractor. If there is a factual dispute regarding the status of a pertinent person or entity as an owner, a contractor, or a subcontractor, a predicate question should be submitted to determine that status. Appropriate defini tions of owner, contractor, and subcontractor should accompany the question. See Tex. Prop. Code § 28.001. Exception regarding timing of payment to contractor. For a claim against an owner, substitute the phrase the fifth day after the date Don Davis received loan pro ceeds for the thirty-fifth day after the date Don Davis received a written payment request from Paul Payne if — (1) the owner has obtained a loan intended to pay for all or part of a contract to improve real property; (2) the owner has timely and properly requested disbursement of pro ceeds from that loan; and (3) the lender is legally obligated to disburse such proceeds to the owner, but has failed to do so within 35 days after the date the owner received the contractor’s payment request. See Tex. Prop. Code § 28.008. Interest on overdue payment. An unpaid amount begins to accrue interest on the day after the date on which the payment becomes due and bears interest at the rate of 1.5 percent per month and 18 percent per year. See Tex. Prop. Code § 28.004. Interest on an unpaid amount stops accruing under section 28.004 on the earlier of — 1. the date of delivery; 2. the date of mailing, if payment is mailed and delivery occurs within three days; or

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